Coca Cola HBC to buy majority stake in Coca-Cola Bottling Company of Egypt

Coca-Cola Hellenic Bottling Company (Coca Cola HBC) agreed on Thursday to buy a majority stake in Coca-Cola Bottling Company of Egypt (CCBCE) for $427 million after the Swiss-based soft drinks bottler reported a jump in half-year profits.

A unit of HBC will buy around 94.7 percent of the Egyptian company from its major shareholders including affiliates of the Coca-Cola Co and MAC Beverages, HBC added in a statement.

The deal, which would enable HBC to expand in its largest market Nigeria and grow in Egypt, was announced shortly after the company reported a nearly 68 percent jump in comparable operating profit to €350.3 million ($413.2 million) for the six months ended July 2.

“We are excited to welcome CCBCE to our group. We see great potential for this business to unlock considerable opportunities in the NARTD (Non-Alcoholic Ready To Drink market) category in Egypt.” Zoran Bogdanovic, chief executive of Coca-Cola HBC, said in the statement.

Abdul Galil Besher, chairman of MAC Beverages Limited and CCBCE said he believes that “Coca-Cola HBC will accelerate CCBCE’s growth ambitions, by combining its expertise, breadth of knowledge, know-how and critical mass, with the company’s deep market knowledge developed over our multi-decade presence in Egypt.”

Meanwhile, Brian Smith, president and chief operating officer of the Coca-Cola Company, said: “This transaction promises to strengthen our system in Egypt, where the expertise of Coca-Cola HBC will be a complement to the local knowledge and capabilities of CCBCE.”

“This agreement represents an important development in the Coca-Cola system’s long-term commitment to the growth and development of this important market.” Smith added.